The solution method in King and Watson ("System Reduction and Solution Algorithms for Singular Linear Difference Systems under Rational Expectations", Computational Economics, 2002) has been modified to take into account Kalman filtering of shocks when the components of these shocks are not separately observed. This modification is described in Appendix B (Online Appendix) of the paper and the relevant program is in �mdrkw_learning.m�. All programs related to the KW method, as well as �mdrkw_learning.m�, are in the folder �kw� and should not be modified.

The �DSGE model� part of the paper relates to Table 2, 3, 4 and 5, as well as to Figure 7 and 8. A specific .m file has been created to replicate each of these 6 pieces of output. The name of the .m files are self explanatory (e.g. �maketable4.m�). All other files are auxiliary. 

Note that the estimates presented in Table 2 and 3 have been obtained by repeating the moment-matching exercise with several alternative initial values for the parameter vector, to assess the global robustness of results. The file �maketable2and3.m� only has one such experiment with one set of initial value for the parameter vector. 

Any questions about these programs can be addressed to Kevin Moran (kmoran@ecn.ulaval.ca)
